HB 5868 Summary

• Establishes "benefit corporations" as a new type of domestic corporation with specific public benefit purposes, requiring the corporate name to include "benefit corporation," "benefit company," or "B.C."

• Prohibits benefit corporations from converting into other business organizations and prevents other business organizations from converting into benefit corporations.

• Adds dissent and appraisal rights for shareholders when a benefit corporation amends its articles of incorporation or engages in mergers or share exchanges involving changes to its benefit corporation status.

• Modifies document filing procedures to allow electronic submission of annual benefit reports to the state administrator and clarifies that such reports are excluded from certain filing requirements.

• Contains a conditional enactment clause requiring three companion bills (HB 5867, HB 5869, and HB 5872) to be enacted for this bill to take effect 90 days after passage.